Nexus to acquire Anzon Energy, subsidiary

Nexus Energy Limited, Anzon Australia Limited (AZA) and Anzon Energy Limited (AEL) have announced an agreed merger which will create a leader in the Australian oil and gas sector with significant growth potential.

The Merger involves Nexus acquiring both AZA and AEL by way of separate, noninterdependent Schemes of Arrangement.

In respect of the AZA Scheme, Nexus and AZA have executed a Merger Implementation Deed (”AZA MID”) to effect the merger between Nexus and AZA.

Nexus is offering A$1.751 per AZA share (”AZA Offer Price”) with consideration of A$0.71 of cash and A$1.04 of Nexus scrip.2 The scrip value is based on an assumed trading range for Nexus shares of A$1.50 to A$2.053. This creates significant certainty for AZA and Nexus shareholders but retains the prospect of value upside in the event of further drilling and appraisal success by Nexus.

A meeting of AEL Shareholders is expected to be convened in late April 2008 to consider a resolution to approve the AEL Board voting in favour of the merger between AZA and Nexus and authorising AEL to elect to receive only Nexus shares under the AZA Scheme. A shareholder circular is expected to be despatched to shareholders in early March 2008 in which the Board of AEL will recommend the AZA Scheme to AEL shareholders.